SEC Moves 3,200 RIAs to State Supervision

The Life & Health National Underwriter reported today that per Dodd-Frank requirements, the SEC is moving supervisory responsibilities to the states for RIAs with more than $25 M but less than $100 M in AUM.  Over 3,200 RIAs will now be monitored by different agencies and different personnel.  A change in supervision always raises a lot of interesting questions.

• Will the states have the staff to conduct the additional exams?  
• Will some of the new emerging private compliance firms fill the demand?
• Will the exams by a "fresh set of eyes" flag new problems for small, regional firms?